Protests in Argentina could disrupt Vaca Muerta supply
Argentine media reported April 13 that frustrated healthcare workers and truckers in the country's Neuquen province, home to the Vaca Muerta shale, had blocked roads leading to the basin.
Regional truckers have joined healthcare workers protesting for salary increases. Argentine newspaper Rio Negro reported that roads leading to the heart of the Vaca Muerta shale were blocked. As of yesterday, service stations operated by energy company YPF were out of fuel because the roads leading to a regional refinery were obstructed by protesting truckers.
Sources at two production companies in Argentina who spoke yesterday with S&P Global Platts on condition of anonymity said production was still ongoing at Vaca Muerta. "But if the conflict is not resolved soon, then we will have an impact on production,” one said.
About 30 rigs in the basin have been sidelined because of the roadblocks.
Spanning an estimated 7.5mn acres in total, Vaca Muerta is among the largest shale basins in the world. Research from the US Energy Information Administration finds the basin holds 308 trillion ft3 of natural gas and 16bn barrels of oil and condensate.
YPF declared March 19 that a $1.5bn investment in the shale basin could boost natural gas production by as much as 70%. Argentina is looking at developing an LNG terminal to market Vaca Muerta's gas internationally.